The price of oil rose where it happened on Friday to its highest level in a year. That ends this week in the middle of a strong note about the producer's commitment to continue the supply reduction of this important commodity.
Furthermore, that also becomes a positive sign of the United States' positive recovery. It is known that the country’s economic situation was disturbed by several things before. Those are like the political situation and high case of coronavirus there.
Based on the data, the Brent Crude oil was up by about 0.41% and it became $ 59.24 in the market. Meanwhile, the WTI contract also rose by 0,73% and reached $ 56,64. However, this movement can be changed based on several situations.
The Hope about Stimulus
The hope due to the $1.9 million stimulus package which is recommended by Joe Biden as the American President in January will be legalized soon. The investor sentiment is also supported by the United States goods order which is stronger than the expectation.
OPEC as an organization that maintains the world oil commodity and its allies is so discipline. Their attitude so far has become a really positive thing. That was stated by the CMC Markets strategy leader to Reuters some days ago.
He was referred to the cartel decision to continue the supply reduction which has been effective to reduce the global raw oil stock. After that, the signs of great economic growth can be read by the investors and market participants.
The thing that increases market is the China's raw oil demand. The industry tracking shows that there are two north marine crude oil tankers that go to China for 22 up to 24 of March 2021. It was informed by the global market strategy expert.
The Bullish Impact
Furthermore, he said that when a demand pushed the commodity price, that will have a stronger bullish impact. It could leave a more durable reflection on the price action. That is stated in a note by an expert in the global market.
The positive condition happens on Dollar right now. That main currency is on its way to reach the best weekly increase in three months period. That happened on Friday. The cause is a trust that the US economy will grow better than its competitors.
The index of the Dollar touches its highest level in the new two months trade in the Asian session. That happened ahead of labor market data. The numbers of nonfarm payroll are closely monitored. Greenback is also renewing its highest level.
The United States economy is really strong and it is better than other countries. That was said by a research expert and he refers to some points. Those are like the employment indicators, manufacturers, and the speed of vaccination done today.
The Situation Can Exist for Some Weeks
The interesting thing is that this Dollar strengthening can continue up to several weeks. However, there are several factors that need to be considered. Those are Europe and Asia which chase the vaccination to handle the pandemic.
Meanwhile, the monetary policy is also too easy and the policies made by the Fed can affect the whole situation as well. Democrat in the United States Senate is ready to do a marathon vote. The aim is to override the opposition parties.
That is related to the COVID-19 fund proposal from Joe Biden. The amount is $1.9 million. Analysts and investors are considering whether the dollar power this year is the temporary position adjustment after a 7% decrease or not.
There is some potential where the Dollar weakening must be closed. It is especially to Yen where the hedge fund has been grouped as their biggest bearish bet since 2016. USD was moved slightly in 105, 55 yen. That happened on Friday.
